Medicare Supplement Companies
Medigap, sometimes called Medicare supplemental insurance, helps cover your out-of-pocket costs for Original Medicare. Medigap policies are sold by private insurers. Finding the Medigap plan that’s right for you requires research.
More than 14 million Americans relied on Medigap to help cover their Original Medicare out-of-pocket costs in 2018, according to the American Association for Medicare Supplement Insurance.
Medigap, sold through private insurance companies, has become increasingly popular over the years. More than 23 percent of Medicare enrollees owned a Medigap plan in 2018, and enrollment in supplement plans increased by nearly 5 million between 2010 and 2018.
How to Compare the Best Medigap Companies
Medigap has been around since 1980 in one form or another. Private insurers were loosely regulated in what they could sell at first. Today, there are 10 standardized plans that all insurers have to stick to, though they may offer different options in Wisconsin, Massachusetts and Minnesota.
While the plans are standardized, pricing and other features can vary widely from company to company. When shopping for a Medigap policy, be sure to compare the same Medigap plan between one company and others offering the same plan.
- How long the company has been around.
- The number of plans the company offers.
- Plan discounts for women, nonsmokers or other categories that can save you money.
- Plan pricing compared to other companies.
- The company’s rating with A.M. Best, which rates companies in the health care industry.
- The costs of high-deductible options for Plans F and G, which can increase your Medicare deductible.
- Whether a particular Medigap plan is available in your state.
- Whether the company sells Medicare SELECT plans that require you to use certain doctors and other health care providers.
Selecting the Right Medicare Supplement Company
Choosing the right Medicare supplemental insurance company means finding the Medigap plan that best meets your situation and needs. You’ll need to carefully weigh your health and financial situation and what each plan offers.
- Determine Your Eligibility
- To be eligible for Medigap coverage, you first have to be enrolled in Original Medicare (Part A and Part B). You can’t buy Medicare supplemental insurance if you have Medicare Advantage.
- Price and Budget
- If you want additional coverage against unexpected medical bills and are willing to pay an additional premium on top of Medicare Part B, Medigap may be right for you.
- Health and Financial Needs
- If you are in good health and don’t expect expensive medical care, certain Medigap plans may be the right choice for you. Plans A, K and L provide only basic coverage and may be a better option. You may also prefer a Medicare SELECT plan if you want to keep your premiums low.
- Services and Benefits
- Consider if the company also sells Medicare Part D prescription drug coverage. You may also find discounts if you bundle your Medigap policy with home, auto or other coverage from the company.
- Research and Compare Prices
- Be sure to research the background of the company and compare its Medigap plan prices to the same plans offered by several other companies. Remember that the same plan may cost much less at another company.
Best Medigap Companies in 2020
The best Medicare Supplement companies include some of the biggest insurers in the United States as well as smaller firms.
Comparing what each company has to offer can help you decide which is the best fit for your needs and finances.
- Aetna has an A rating from A.M. Best and offers the most popular Medigap plans — F, G and N — in most states. The company was founded in 1850 and joined CVS Health in a $69 billion merger in 2018, creating one of the country’s largest health care giants.
- Cigna and its subsidiaries have an A- rating from A.M. best. The company was the fourth largest health insurer in the United States with 15.9 million members and $41.6 billion in revenue in 2019 according to Becker’s Healthcare.
- Crum & Forster
- Crum & Forster has an A rating from A.M. Best. Founded in 1822, it reported $22 billion in revenue and $71 billion in assets for its parent company, Fairfax Financial Holdings Limited, at the end of 2019.
- GPM Health & Life
- Government Personnel Mutual Health & Life has an A- rating from A.M. Best. It was founded in 1934 as a life insurance company serving military personnel. It has since expanded its products to include Medigap policies, annuities and final expense coverage. It reported total assets of more than $705 million in 2019.
- Humana has an A- rating from A.M. Best. Originally founded as a nursing home company 1961, it moved into hospital and insurance plans in the 1980s. In 2019, it was the fifth largest health insurer in the U.S. with 14 million members and $41.6 billion in revenue.
- Liberty Bankers
- Liberty Bankers has a B++ (Good) ranking from A.M. Best, indicating healthy financials and a stable future. It has expanded to 46 states since first opening in Oklahoma in 1958. It reported its value at more than $1 billion in May 2020.
- Medico holds an A- rating from A.M. best. It currently serves 250,000 active policies in 41 states and reports assets of more than $2.4 billion.
- Mutual of Omaha
- Mutual of Omaha has an A+ (Superior) rating from A.M. Best. Founded in 1909, it is the fourth largest Medicare supplemental insurance company in the United States with more than 155,000 Medigap policies alone. It reported assets of $9.1 billion in 2019.
- Transamerica holds an A (rating from A.M. Best. Founded in 1904, it has assets of more than $201 billion, according to Statista, making it the 11th largest life insurance company in the United States, based on assets.
- United Healthcare
- United Healthcare has an A rating from A.M. Best. It is the largest health insurance company in the United States and the largest Medigap insurance company as well. It had 49.5 million members and $201 billion in revenue in 2019. It also serviced more than 1 million Medigap policies.
8 Cited Research Articles
- Crum & Forster. (2019, December 31). About Crum & Forster. Retrieved from http://www.cfins.com/about-us/
- Statista. (2019, October). Largest Life Insurance Companies In the United States In 2018, By Assets (in billions of U.S. Dollars). Retrieved from https://www.statista.com/statistics/194489/life-insurance-companies-in-the-us-with-most-assets/
- Haefner, M. (2019, January 10). America’s Largest Health Insurers in 2018. Retrieved from https://www.beckershospitalreview.com/payer-issues/america-s-largest-health-insurers-in-2018.html
- American Association for Medicare Supplement Insurance. (2019). 2019 Medicare Supplement Facts. Retrieved from https://medicaresupp.org/wp-content/uploads/2019/06/2019-Medicare-Supplement-Data-Page-1.pdf
- U.S. Centers for Medicare & Medicaid Services. (n.d.). What’s Medicare Supplement Insurance (Medigap)? Retrieved from https://www.medicare.gov/supplements-other-insurance/whats-medicare-supplement-insurance-medigap
- U.S. Centers for Medicare & Medicaid Services. (n.d.). Find a Medigap Policy that Works for You. Retrieved from https://www.medicare.gov/medigap-supplemental-insurance-plans/
- U.S. Centers for Medicare & Medicaid Services. (n.d.). Medigap (Medicare Supplement Health Insurance). Retrieved from https://www.cms.gov/Medicare/Health-Plans/Medigap
- U.S. Centers for Medicare & Medicaid Services. (n.d.). Medigap (Medicare Supplement Insurance) Policies Module 3. Retrieved from https://www.cms.gov/Outreach-and-Education/Training/CMSNationalTrainingProgram/Downloads/Outdated-Downloads/3modWorkbookv52311.pdf